Commercial Real Estate Investment Articles

There are many unscrupulous groups that are trying to convince American investors that the only way to succeed in real estate investing is to pay $25,000+ for private coaching/mentoring. This is a terrible waste of money, and it is a complete fabrication to even pretend that such methods work. There are many reasons why.

Many people feel insecure about negotiating commercial real estate deals. They feel that there’s some type of magical formula, or some super-human skill set that others possess. Well, forget those books by Donald Trump and others on the art of negotiating. There is no art to negotiating – other than how to approach it and the liberal use of common sense. Anybody can negotiate a commercial real estate deal, if they follow these easy steps.

Commercial real estate encompasses a large number of asset classes, including retail, office, mobile home park, RV park, apartments, billboards, industrial, self-storage and raw land. Each of these asset classes has their own unique characteristics. So how do you decide which asset class to invest in?

There are many ways to invest. But the most proven way of obtaining high returns has been through commercial real estate. This is not just a recent phenomenon – it dates back to the founding of the United States. John Jacob Astor became America’s first millionaire through commercial real estate in Manhattan. And the fundamental reasons that commercial real estate is the #1 investment choice remain as true today as they were in the 1800’s.

Real estate investing in built on leverage – the concept of obtaining debt at an average of 70% to 80% of value. While many real estate investors think about the property, other focus on investing in the debt side of the business. And the best of this debt is called “first-lien” which means that, if the debtor does not make the required payments, the note holder takes back the property. So how does this sector of real estate work?

Buying first-lien notes has been a very successful investment strategy since the origins of the real estate sector. But there are some basic rules that must be followed if you want to succeed at this strategy.

The world is full of risks, and proper insurance allows you to mitigate these risks. If you ask any industrial property owner, they will rank insurance as their number one source of peace of mind, as it protects them 24/7 from a myriad of potential disasters. So how do you properly insure your warehouse property?

Real estate is all about location, location, location – and the same is true for AirBnb rentals. According to a new study, there are five markets that top the list on location, and five that are much weaker than all others. So what are the best five – and worst five – markets for AirBnb investing?

There are few investors in the U.S. that have not been at least curious about AIRBNB investing and what the potential benefits and landmines are. The truth is that there are solid financial returns if you do it right, but also huge potential disasters if you fail to understand the business model or complete correct due diligence. So what are the Top Five things you need to know about AIRBNB investing?

Section 8 of the Housing Act of 1937  (42 U.S.C. § 1437f), also known as “Section 8”, authorizes the payment of rental housing assistance to private landlords on behalf of approximately 4.8 million low-income households. The largest part of this law is the Housing Choice Voucher program which pays a large portion of the rents and utilities of about 2.1 million households. The program is managed by the U.S. Department of Housing and Urban Development. So how does Section 8 work?

Section 8 housing is a unique niche of real estate investing – and also one that has unique benefits as well as disadvantages. It’s important that every investor considering this sector be fully aware of the issues involved. Here is a breakdown of the pros and cons.

One of the worst dangers in real estate is to own property that becomes obsolete with modern design and tastes of tenants. And warehouse investing is no different. There are certain features that today’s warehouse tenants are looking for, and these are the ones that you should watch for when you are evaluating properties to buy.

A recent report on the industrial sector highlighted some of the facts and trends recording this industry. Here are some of the latest statistics for this niche.

Real estate investing in built on leverage – the concept of obtaining debt at an average of 70% to 80% of value. While many real estate investors think about the property, other focus on investing in the debt side of the business. And the best of this debt is called “first-lien” which means that, if the debtor does not make the required payments, the note holder takes back the property. So how does this sector of real estate work?

Buying first-lien notes has been a very successful investment strategy since the origins of the real estate sector. But there are some basic rules that must be followed if you want to succeed at this strategy.

Many investors associate apartment investing with having to file evictions on troubled tenants. While it is true that apartment owners do have to use evictions as a method to remove those who won’t pay their rent or act as a good neighbor, many people do not understand the actual process. Here’s the A to Z of how evictions really work on apartment investment.

There are many ways to approach people. Entire books have been written on the subject, and anybody in sales will be happy to give you their personal opinion. But in over 30 years of building up one of America’s largest real estate portfolios, we are firm believers that being direct is the correct path. Telling it like it is represents a refreshing change from a politically correct America, and sellers appreciate the honesty and time efficiency. So how does that work?

Investing in strip shopping centers has been a productive market segment for decades. However, there are some issues with this real estate sector that require some special consideration to ensure that it will meet your investment needs. So what are the dangers to strip shopping center investing?

Of all the real estate sectors, “triple net leases” stand unique in their structure. They were originally designed to allow large franchises to utilize and control property without having to invest significant capital, with the intent that they could use the money that would have been devoted to real estate to further expand their business. Today, triple net lease users range from private enterprise to even the U.S. post office. So what is a “triple net lease” and why is that an attractive real estate investment concept?

Webster’s defines a duplex as “a house divided into two apartments, with a separate entrance for each”. That being the case, why not be able to convert those two apartments back into a single house? It’s an issue that many duplex owners think about.

Benjamin Franklin once said that “diligence is the mother of good luck”. This is as true today as it was in 1776. When you conduct proper due diligence, you remove the risk from your investment’s success or failure. So what are some of the overlooked aspects of doing outstanding due diligence on a single-family home investment?

To many investors – particularly those who enjoy boating – there can be no more exciting idea than owning a marina on a lake or ocean. But the fantasy does not always meet the reality, and there are some things that every potential marina owner should know before they take the plunge.

Should you consider investing in a Bed & Breakfast? This is a question that many people across America are asking themselves as they strive to find a higher quality of life with less stress in an uncertain world. The answer can be somewhat complicated, and is completely personal in nature. How can you decide if a B&B investment is right for you?

How do you properly set the rates at a marina? It’s not just guesswork. Instead, there’s a methodology that yields the correct rent based on market levels. So how do you do it?

There are few investment vehicles more versatile than the standard American duplex. Essentially two dwellings that share a common wall (although sometimes a lower vs. upper floor) these economic workhorses have many different options to meet a variety of financial objectives.